Firms attracting funds

Weak pound sees record foreign investment into UK tech firms

Derek Mackay at ID Co

ID Co welcomed Finance Secretary Derek Mackay and Scottish Enterprise CEO Steve Dunlop ahead of a $2m investment in the Edinburgh firm (pic: Terry Murden)

More foreign investment has been poured into the UK tech sector in the first seven months of this year than in the whole of last year.

UK tech firms have received £5.5 billion since January as investors shrug off Brexit worries and take advantage of the weak pound, according to figures from the UK’s Digital Economy Council and Tech Nation.

The study for the Department of Digital, Culture, Media and Sport (DCMS) body revealed that the UK has overtaken the US for the amount of investment per capita.

So far this year investment from the US and Asia into the UK tech sector totals £3.02 billion compared to £2.38bn for the whole of last year and accounting for 55% of the total.

Asia invested £1.48bn into the UK tech sector compared to £0.49bn in the first half of last year. Companies in the UK’s fintech and financial sector are amongst those that attracted the most interest from Asia’s investors.

Among the investors from Asia were Japan’s Softbank which took a stake in Greensill while Mitsubishi Corporation acquired a 20% stake in UK power firm Ovo Energy. US firms have pumped $2bn into the UK this year.

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